Rosebank Industries in Advanced Talks to Acquire Two U.S. PE-Backed Firms for $3.05bn, Plans £1.9bn Equity Raise

British investment firm Rosebank Industries announced on Monday that it is in advanced negotiations to acquire two U.S.-based businesses owned by private equity firm American Securities for a combined enterprise value of $3.05 billion.

The proposed deals would mark Rosebank’s most significant transaction since its 2024 public listing and reinforce its strategy of acquiring, improving, and eventually exiting industrial and manufacturing assets. Sky News first reported that Rosebank is negotiating to purchase CPM (a leading global supplier of processing equipment for food, animal feed, oilseed, and biomass industries) and MW Industries (a precision components manufacturer specializing in fasteners, springs, and related engineered products).

To fund the acquisitions, Rosebank plans to raise approximately £1.9 billion ($2.59 billion) through an equity issuance, supplemented by debt financing. The company has not yet disclosed the exact structure of the equity raise—whether a rights issue, placing, or open offer—but such transactions typically involve institutional investors and existing shareholders.

The proposed deals follow Rosebank’s first major post-IPO acquisition in August 2025, when it purchased U.S.-based wire-harness producer Electrical Components International for just under $1.9 billion. That transaction established Rosebank’s foothold in the U.S. industrial sector and demonstrated its ability to execute sizable leveraged buyouts. Rosebank also confirmed its intention to move from London’s Alternative Investment Market (AIM) to the London Stock Exchange’s Main Market in the second quarter of 2026, regardless of whether the U.S. acquisitions are completed.

The uplisting would improve liquidity, visibility, and access to institutional capital, aligning with Rosebank’s long-term growth ambitions.

Rosebank’s focus on industrial and manufacturing assets positions it to capitalize on several macro trends:

• Reshoring and supply-chain resilience — U.S. and European companies continue to prioritize nearshoring and “friend-shoring” of critical manufacturing capacity, creating opportunities for value-accretive acquisitions in the U.S.
• Private equity exits — Many PE firms that acquired assets during the low-rate environment of 2020–2022 now face pressure to return capital to investors ahead of new fundraising, leading to increased availability of quality businesses at potentially attractive valuations.
• Industrial digitization and automation — CPM and MW Industries operate in sectors increasingly adopting automation, IoT, and advanced manufacturing techniques—areas where strategic buyers can drive operational improvements and margin expansion.

The deals, if completed, would significantly expand Rosebank’s U.S. footprint and diversify its portfolio beyond wire harnesses into food/agriculture processing equipment (CPM) and precision-engineered components (MW Industries). Both targets serve stable, essential end-markets with recurring aftermarket and service revenue streams.

Financial and Shareholder Considerations

The £1.9 billion equity raise represents a substantial dilution event for existing shareholders, though Rosebank’s strong post-IPO track record and clear acquisition strategy may mitigate concerns. The combination of equity and debt financing suggests a leveraged buyout structure, consistent with Rosebank’s model of enhancing acquired businesses through operational improvements before eventual exits.

The proposed acquisitions are subject to customary due diligence, regulatory approvals (including antitrust review in the U.S.), and final negotiation of terms. No binding agreements have been signed, and there can be no certainty that the transactions will be completed.

Rosebank’s move comes amid a recovering global M&A environment in 2026, with financial sponsors under pressure to return capital to investors ahead of new fundraising. Goldman Sachs CEO David Solomon noted at the UBS Financial Services Conference earlier this month that sponsor activity is accelerating, with valuation sensitivity diminishing as firms prioritize distributions.

The deals also reflect continued interest in U.S. industrial assets, particularly those with strong fundamentals and exposure to secular growth themes (automation, food security, electrification). Rosebank’s intention to uplist to the LSE Main Market in Q2 2026 is expected to improve liquidity and institutional access, potentially supporting further capital raises and acquisitions.

The success of the proposed deals—and the planned equity raise—will likely be key drivers of share performance in the coming months. Analysts believe the company’s ability to integrate CPM and MW Industries, realize synergies, and drive operational improvements will ultimately determine whether this transaction creates meaningful long-term value.